Which of the following cost(s)are inventoried when using absorption costing?
A)direct manufacturing costs
B)variable marketing costs
C)fixed manufacturing costs
D)Both A and C are correct.

Question

Quizplus · Accepted Answer

Absorption costing includes both direct manufacturing costs and fixed manufacturing costs in the cost of inventory. Variable marketing costs are not inventoried under absorption costing as they are expensed in the period they are incurred.

Which of the Following Cost(s)are Inventoried When Using Absorption Costing